What are forex candlestick charts?

Forex candlestick charts also form various price patterns like triangles, wedges, and head and shoulders patterns. While these patterns and candle formations are prevalent throughout forex charts they also work with other markets, like equities (stocks) and cryptocurrencies.

Why are candlestick charts better than other charts?

Candlestick charts highlight the open and the close of different time periods more distinctly than other charts, like the bar chart or line chart. Forex price movements are perceived more easily on candlestick charts compared to others. It is easier to recognize price patterns and price action on candlestick charts.

What is a candlestick in trading?

A candlestick is a type of price chart used in technical analysis that displays the high, low, open, and closing prices of a security for a specific period. It originated from Japanese rice merchants and traders to track market prices and daily momentum hundreds of years before becoming popularized in the United States.

What is a daily Candlestick?

Just like a bar chart, a daily candlestick shows the market's open, high, low, and close prices for the day. The candlestick has a wide part called the "real body." This real body represents the price range between the open and close of that day's trading.